Demand for larger homes takes a beating in Hyderabad for the first time in 6 years

Between 2023 and 2024, Hyderabad was the only city to see the average flat size decrease by 9%

Hyderabad: The positive sentiment of home buyers to have bigger living spaces that came up in Hyderabad over the last decade seems to have taken a beating in one year.

The demand for more spacious flats in the city has primarily grown since 2019 and rose by 24 per cent till last year. According to the latest data released by Anarock on Wednesday, the average flat size in Hyderabad in this six-year period rose from 1,700 sft in 2019 to 2,103 sft in 2024.

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However, the growth was stunted and between 2023 and 2024, Hyderabad had the average flat size decrease by 9 per cent from 2,299 sft in 2023 to 2,103 sft in 2024.

Despite a significant rise in housing prices across cities in 2024, homebuyers continue their quest for bigger living spaces across the country. Stating this, Anarock based on its data, says the average flat sizes in the top seven cities rose by 8 per cent annually in 2024 – from 1,420 sft in 2023 to 1,540 sft in 2024.

The data shows that Hyderabad however is the only city to see flat sizes decrease in this period. Anarock report says, “In Hyderabad, the average flat size rose 24% in this six-year period – from 1,700 sq. ft. in 2019 to 2,103 sq. ft. in 2024. Contrastingly, between 2023 and 2024, Hyderabad was the only city to see the average flat size decrease (by 9%).”

Meanwhile, at 29 per cent, NCR saw the highest annual growth of average flat size – from 1,890 sft in 2023 to 2,435 sft in 2024.

Anuj Puri, Chairman, Anarock Group said, “This surge is primarily attributable to the increased new luxury housing supply in the region over the last one year. Developers here are closely tracking and responding to demand, which is why NCR has seen significant new supply in the above Rs 1.5 crore price bracket. Size is one of the key defining characteristics of luxury homes.”

“Chronically space-constrained MMR saw the lowest average flat size growths in this six-year period,” adds Puri. “The average flat size in MMR was 784 sq. ft. in 2019 and increased by 8% to 849 sq. ft. in 2024.”

Average flat sizes in the other southern cities – Chennai and Bengaluru – were 1,445 and 1,660 sft respectively in 2024.